Food Recalls on the Rise: How FDA Cuts Are Putting Customers, Retailers, and Restaurants at Risk

 

As of mid-2025, the number of food recalls in the United States is accelerating at a pace not seen in over a decade. From bacterial contamination in ready-to-eat meals to undeclared allergens in packaged snacks, these recalls are becoming disturbingly routine—and there’s a reason. Deep cuts to the U.S. Food and Drug Administration’s (FDA) budget and staffing are severely compromising the agency’s ability to inspect, test, and enforce safety standards. That’s a dangerous undercurrent for consumers and food sellers alike according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In 2023, the FDA had a food safety budget of approximately $1.1 billion. By 2025, after consecutive congressional rollbacks, that budget has dropped nearly 15%, and with it, staffing reductions have impacted key food safety inspection and compliance operations. According to the Center for Science in the Public Interest, the average number of routine facility inspections has dropped by 22% in the last 18 months alone.

The Consumer Fallout: Trust Eroding, Safety in Question

Consumers are increasingly left in the dark—and in danger. In recent months:

·       A major deli meat recall sickened over 250 people across 14 states.

·       An undisclosed peanut allergen in a popular plant-based frozen entrée sent at least nine people to the hospital.

·       A listeria outbreak tied to bagged salad claimed two lives and led to over 300,000 units being pulled from store shelves.

Without robust FDA oversight, consumers have less assurance that what’s on their plate is safe to eat. Retailers and foodservice operators are left to fill the regulatory void, straining resources and increasing liability risks.

 

Top 3 Food Recall Risks for Grocery Stores

1.       Private Label Exposure: With more grocery chains expanding private label offerings to capture margin, they are taking on more liability. A recall tied to a store-brand item can devastate brand trust and customer loyalty.

2.       Cold Chain Integrity: Ready-to-eat and heat-and-eat meals rely on flawless refrigeration throughout the supply chain. One slip in temperature monitoring can trigger massive recalls and product spoilage.

3.       Allergen Mislabeling: As more consumers seek allergen-free or special diet foods (gluten-free, dairy-free, nut-free), mislabeled products are a growing hazard and a primary driver of FDA recalls.

 

Top 3 Risks for Restaurants

1.       Supplier Verification Failures: Without strong FDA checks on upstream suppliers, restaurants must verify every distributor and producer themselves—raising operational complexity and cost.

2.       Cross-Contamination in Kitchens: Undeclared allergens and bacteria like salmonella or E. coli can thrive in poorly managed prep areas. A single misstep could trigger lawsuits, negative press, and health department shutdowns.

3.       Speed Over Safety: In the rush to serve food faster, many chains are cutting corners in prep procedures, which can compromise food safety without routine external checks.

 

Top 3 Risks for Convenience Stores

1.       Limited Food Safety Training: Many C-store clerks are not trained to handle or monitor perishable foods properly. Without clear guidance from FDA oversight, basic food handling errors can multiply.

2.       Grab-n-Go Vulnerabilities: Fresh sandwiches, wraps, and cut fruits are often made off-site or packaged in-store. With fewer inspections, improper handling can lead to dangerous contamination events.

3.       Third-Party Delivery Risks: Many C-stores now use third-party commissaries to prep meals. If one link in the chain fails to meet safety standards, it can cascade across dozens or hundreds of stores.

 

Four Things Consumers Must Now Keep Top of Mind

1.       Know the Source: Ask where food was made, prepared, or packaged. Trustworthy retailers and restaurants should know and be transparent about their supply chains.

2.       Check Dates & Storage: Be vigilant about “use by” and “best by” dates, and avoid items that appear improperly refrigerated or stored—especially with meats, dairy, and fresh produce.

3.       Allergen Awareness: Always read ingredient labels and don’t rely on generic “free-from” marketing tags. With fewer inspections, mislabeling risk is up.

4.       Sign Up for Recall Alerts: Visit www.foodsafety.gov and subscribe to email or SMS alerts to be notified in real time of national food recalls.

 

Think About This from the Grocerant Guru®

We’re living through a pivotal moment in American food safety. With the FDA’s reduced ability to serve as our national food watchdog, every link in the food chain—from processors and packagers to the point-of-sale—must step up. But let’s be clear: the consumer bears the highest risk. Retailers, restaurants, and C-stores must treat safety not as a regulation to follow, but as a brand pillar to build trust.

If you’re in food retail or foodservice, remember: a single recall can undo years of brand equity. As for consumers, the path forward is one of proactive awareness and vigilance. Food safety is no longer a given—it’s a shared responsibility.

Steven Johnson, the Grocerant Guru® at Foodservice Solutions®, is an industry thought leader specializing in consumer food trends, Ready-2-Eat and Heat-N-Eat meal solutions, and strategic branding at the intersection of grocery, restaurant, and convenience store channels.

The Silent Collapse: How SNAP Cuts Could Spell Doom for Legacy Grocers — and Spark a Food Crisis in America’s Shadows

 

A look at how one federal policy change may unravel the traditional food ecosystem, fueling black-market bodegas and overwhelming food banks across the country from the minds-eye of Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The U.S. food industry is no stranger to disruption — from automation and delivery apps to the COVID-19 pandemic. But a quieter, more seismic shift is unfolding beneath the surface, threatening to gut traditional grocery stores and fracture food access for millions. The trigger? A controversial policy change: “Agriculture Secretary blocks SNAP benefits for undocumented immigrants”, following a $186 billion federal budget cut to the program.

At first glance, this appears to be just another political maneuver. But in reality, it may accelerate a long-brewing undercurrent that could collapse legacy grocers, overrun food banks, and create a shadow economy of underground food supply networks. Here's how.

 

SNAP’s Central Role in Retail Food Economics

The Supplemental Nutrition Assistance Program (SNAP) is not just a social safety net — it’s a backbone of the American grocery economy. Over 41 million people in the U.S. depend on SNAP to buy groceries, spending tens of billions of dollars annually at retail food outlets. In fact, one in every eight dollars spent in grocery stores is tied to SNAP.

Legacy grocery stores — especially regional chains and rural supermarkets — depend heavily on SNAP dollars. These stores are already operating on razor-thin margins (typically 1–2%). The abrupt removal of millions of undocumented immigrants from SNAP eligibility — and deeper program-wide budget cuts — risks cutting out large swaths of revenue from fragile stores, particularly in low-income and immigrant-heavy communities.

 

The Coming Crisis: What Grocery Stores Stand to Lose

1.       Loss of SNAP-dependent foot traffic: Many low-income shoppers cluster their spending around SNAP availability dates. The reduction of eligible recipients means fewer store visits and smaller baskets.

2.       Rural and urban food deserts will widen: Small-town grocers, already sparse, rely disproportionately on government-backed spending. Their closure will leave vast food deserts behind.

3.       Accelerated bankruptcies: We’ve already seen legacy names like Safeway, Winn-Dixie, and Kroger shutter locations. These cuts could push more of them over the edge — particularly in lower-income ZIP codes.

4.       Job losses: Retail grocery employs more than 3 million workers nationwide. As stores close, low-wage workers (many of whom are SNAP recipients themselves) may be pushed into deeper economic instability.

 

Rise of the Underground Bodega

History shows that when access to necessities is restricted, alternative economies arise. With SNAP restrictions tightening, and the formal food industry crumbling in some neighborhoods, informal bodegas, pop-up street vendors, and even black-market food sales may fill the gap.

These underground markets may:

·       Operate outside regulatory oversight (health, safety, taxation)

·       Sell expired, diverted, or surplus goods at inflated or under-market prices

·       Become essential for undocumented or unbanked communities, who now face barriers to both income and nutrition

This is not speculative: During past economic downturns and crises, similar phenomena emerged in cities from New York to Los Angeles — informal corner stores selling basics like rice, beans, diapers, and medicine, often in cash-only environments.

 

Food Banks: The Final Failing Line of Defense

Already overwhelmed post-pandemic, food banks across the U.S. are stretched thin. They rely on federal funding, private donations, and surplus grocery stock. But if grocery stores begin to disappear — and government dollars shrink — food banks could face:

·       Unprecedented demand surges

·       Supply shortages as stores collapse and fewer manufacturers offload overstock

·       A surge in undocumented individuals and families seeking food support for which they now don’t qualify

This perfect storm could break the backs of organizations that serve as the last resort for food-insecure Americans.

 

The Bigger Picture: A Two-Tiered Food Economy

The SNAP cuts — especially those targeting undocumented immigrants — don't occur in a vacuum. They redefine the structure of who gets access to food and how. What emerges is a two-tiered food economy:

·       Tier 1: Affluent, documented consumers shopping at corporate chains and using digital payment platforms.

·       Tier 2: A shadow food network of unregulated bodegas, informal barter, and community-led relief operations — mostly serving the marginalized, undocumented, and destitute.

It’s a division not only of class, but legality. And it’s being etched into the American food system, brick by invisible brick.

 

Final Thoughts: A Silent Shift With Loud Consequences

While the recent SNAP cuts are framed as fiscal conservatism, they may ignite a structural collapse in the food industry that reverberates far beyond the checkouts. Traditional grocers, already strained, are now bleeding vital revenue. Simultaneously, millions of the most vulnerable are pushed out of official support systems and into informal, potentially unsafe alternatives.

If this trajectory continues unchecked, the U.S. could soon see a bifurcated food economy: gleaming, digitally optimized supermarkets for some — and black-market bread lines for the rest.

And once legacy grocery chains collapse under the weight of these changes, it may be too late to rebuild what was lost.

Drive Sales. Boost Profits. Stay a Step Ahead.

The Foodservice Solutions® team is dedicated to helping you grow your top-line sales and bottom-line profits.

Are you looking a customer ahead? We have the strategies to get you there.

🌎 Visit GrocerantGuru.com
📩 Contact us: Steve@FoodserviceSolutions.us

Grocerant Guru® Speaks: When the Sizzle Fades — Can Starbucks Survive a Cold Brew Reputation?

 

In the world of foodservice, brand relevance is your secret sauce—and once that sizzle cools, it’s hard to bring it back to a boil. Today, all eyes are on Starbucks, once the global gold standard for premium coffee experiences, now stumbling with flat sales, shrinking customer counts, and a growing identity crisis. One thing is clear yesterdays solutions are not today’s answers.

If you've ever asked yourself, “What happens when a powerhouse chain loses customer trust?”—you’re about to find out. Starbucks is on a slippery slope. But first, let’s look at how others slipped before them from the view of Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

 

Starbucks: Still Brewing, But Losing Steam

Once revered for turning a simple latte into a lifestyle, Starbucks now feels less like a cultural hub and more like a caffeine habit—expensive, automated, and occasionally cold (in both temperature and tone).

·       Customer traffic dropped 7% year-over-year in Q2 of 2025, according to Technomic.

·       Mobile order glitches, slow service, and long drive-thru times are frustrating once-loyal customers.

·       Starbucks lost over $11 billion in market value in just three months this year, triggered by brand boycotts and operational inefficiencies.

·       Gen Z, a critical target for future growth, is now leaning toward local cafes, indie coffee, and more personalized digital loyalty programs.

The brand is still everywhere—but being ubiquitous doesn’t mean being irresistible.

 

History’s Harsh Lessons: 3 Brands That Burned Out

Let’s take a stroll through the foodservice graveyard. These companies lost the customer, then the culture, then the business.

1. Howard Johnson’s

In the 1960s, HoJo’s was America’s restaurant. Over 1,000 orange-roofed locations served clam strips and 28 flavors of ice cream. But they stopped innovating while competitors like McDonald’s and Denny’s evolved. Today, only one remains. The lesson? Scale without relevance is just noise.

2. Friendly’s

Remember the cone-head sundaes? Friendly’s did family dining right—until it didn’t. As millennial parents moved to fresher, faster options, Friendly’s stuck with frozen meals and dated decor. After multiple bankruptcies, it has fewer than 80 locations left and zero cultural impact. Nostalgia can't beat convenience.

3. Sbarro

Once the king of the food court, Sbarro's decline mirrored the fall of the American mall. They failed to pivot to fast-casual or delivery. Domino’s and Blaze ran circles around them. Today, Sbarro has a presence in airports and gas stations, but its reputation is a slice of what it once was.

 

What Could Happen to Starbucks Next?

If Starbucks doesn’t rediscover its magic—and fast—here are four real risks on the table:

1.       It Becomes a Premium Commodity, Not a Beloved Brand
Instead of being “your place,” Starbucks risks becoming just “a place.” That’s how grocery store brands and gas station coffee start winning.

2.       Labor Shortages and Store Chaos
Demoralized baristas, messy stores, and long waits drive away digital-first consumers who want consistency and speed. Starbucks’ labor costs are rising, but service quality isn’t.

3.       Loyalty Declines While Loyalty Apps Improve Elsewhere
Starbucks Rewards was once the industry’s gold standard. Now it’s bloated and confusing, while Dutch Bros and Panera offer streamlined perks, personalization, and even AI-powered ordering.

4.       More Store Closures in Urban Centers
Shrinking foot traffic and political controversies in urban zones may push closures. In 2024, Starbucks closed 17 locations in major U.S. cities due to “safety concerns,” and 2025 looks worse.

 

The Grocerant Guru’s 3 Suggestions for a Starbucks Comeback

1. Localize the Menu, Re-energize the Culture
Starbucks must hyper-localize its food and beverage offerings—think Ube cold brews in Seattle, maple sweet cream lattes in Vermont, chili mocha in Texas. Customers crave discovery, not standardization. Bring back regional pride in a global footprint.

2. Embrace the Grocerant Strategy: Mix, Match, and Meal Up
Today’s consumers don’t want just a drink—they want a snack, a protein box, or a sweet bite that fits their lifestyle. Bundle better. Offer Ready-2-Eat “3 PM energy kits” or Heat-N-Eat breakfast-for-dinner packs. Be a meal solution—not just a coffee fix.

3. Fix the Messaging, Focus on the Customer—not the Cause
Consumers aren’t tired of values—they’re tired of being preached to. Starbucks’ tone has become corporate, political, and detached. Shift back to personal storytelling, barista love, and daily rituals. Sell a moment, not a movement.

 

Final Sip:

The heart of every successful restaurant is this: solve a problem, serve a purpose, spark a smile. Starbucks used to check all three. Now they must listen, localize, and lead with heart—not headlines.

Because in the grocerant era, if you're not saving customers time, providing value, and making them feel seen, someone else will.

Stay flavorful, stay relevant, and keep those meals and moments fresh.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter